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| Europe |
| The EU's Horrible Honeymoon |
| 2010-02-09 |
| Posted by:tipper |
| #12 Sounds like any government and political establishment that has gone without significant challenge for years. Markets - if allowed to work - bring what Schumpeter called 'creative destruction' to companies that become hidebound. Such companies often build alliances with regulators to avoid this discipline and maintain market share/profit anyway. Elections - if truly free and the result of an engaged populce - bring accountability to officeholders. Officeholders in turn often build alliances with large dollar contributors, facilitated by a professional election management industry and enabled by a complicit press, to avoid election and policy accountability. Every once in while we need the equivalent of 'creative destruction' to break up those alliances. We're way overdue, and therefore both the cost and the disruption involved are much greater than they could have been had we not as a nation grown lazy and complacent, or just busy at work and with the kids and unaware of the looming dangers. |
| Posted by: lotp 2010-02-09 22:12 |
| #11 "years of violating rules, cheating on figures, financing consumption, public and private by huge debts" Sounds like D.C. >:-( |
| Posted by: Barbara Skolaut 2010-02-09 21:41 |
| #10 Welcome back EC. It has been years. |
| Posted by: whitecollar redneck 2010-02-09 21:20 |
| #9 Brussels has forced the Greek government to present a plan to drastically reduce its budget deficit from 13% to 3% by the end of 2012. Somebody should tell the US government to try that. |
| Posted by: Ebbang Uluque6305 2010-02-09 15:18 |
| #8 No schuhplatter taking place here either EC. Hope your son is well. |
| Posted by: Besoeker 2010-02-09 15:04 |
| #7 I was against the Euro in 1999 because despite everything they said back then the Euro was a political decision, not an economical one. We didn't fare too badly with it until now but the true tests are only coming. Without tbe US deficit the Euro would totally tank right now. |
| Posted by: European Conservative 2010-02-09 14:54 |
| #6 It's worse than I realized. Not merely innocent thoughtlessness, but deliberate fraud and gaming the system. From the article: Otmar Issing, a German economist and a founding member of the European Central Bank (ECB), points out that successive Greek governments have falsified the Greek budget figures for years, in an attempt to deceive Brussels and the eurozone monetary authorities, such as the ECB. What is happening today is the result of “years of violating rules, cheating on figures, financing consumption, public and private by huge debts – this is a way which has to be stopped,” Issing told the BBC. |
| Posted by: trailing wife 2010-02-09 13:55 |
| #5 Greece's government spending is a perfect example of the people voting themselves bread and circusses for decades without any care about finding the money to pay for it. At some point someone had to say no. The major foreign banks recently refused to buy up Greek government paper, as I recall, and now the EU is telling them what they need to do to remain in the euro. They can choose not to, but then they'll have to go back to the drachma, with all that entails. It was exactly because they foresaw this kind of nonsense that the German voters did not want to be part of the euro in the first place. Ants do not appreciate grasshoppers, especially in the middle of winter. |
| Posted by: trailing wife 2010-02-09 12:23 |
| #4 Watch out Greeks, A Strongly worded letter is being written right now. |
| Posted by: Bright Pebbles 2010-02-09 10:05 |
| #3 Jumbo has the right of it, but..... ...Greek targets will be enforced strongly and that, if necessary, even more draconian measures will be taken. And what are these more draconian measures pray tell? Crushing economic sanctions? Forced removal of the government? Force of Arms? Behind every dictator is always the force of arms as the ultimate persuader. Of course the EU & force of arms is probably an oxymoron but I can easily see this shattering the myth of the EU one way or another. The question is what's next? |
| Posted by: AlanC 2010-02-09 09:53 |
| #2 In November 2010, the American people hopefully will force the government to achieve a similar deficit reduction program. |
| Posted by: Glomock Tojo6610 2010-02-09 08:58 |
| #1 Brussels has forced the Greek government to present a plan to drastically reduce its budget deficit from 13% to 3% by the end of 2012. The plan will cost the Greeks blood, sweat and tears. It includes a freeze on civil service wages and the postponement of the retirement age. Brussels has invoked new EU powers under Article 121 of the Lisbon Treaty, which allow it to reshape the structure of GreeceÂ’s pensions, healthcare, labor market and private commerce. The Commission fears a backlash from the Greek unions, who might organize strikes and bring down the Greek government. What Greek government, your sovereignty was ceded to the EU, you are now vassels in a Neo-EU feudalism, a |
| Posted by: Jumbo Thaviting1420 2010-02-09 06:44 |